OUE REIT Management Pte. Ltd. has reported a 5.4% year-on-year increase in its distribution per unit (DPU) to 0.98 Singapore cents for the first half of 2025. This growth is attributed to the company’s effective capital management and the robust performance of its diversified Singapore portfolio. The core DPU, excluding capital distribution, saw an even more significant rise of 11.4% year-on-year.
Despite a moderate decline in revenue and net property income (NPI) by 2.7% and 2.0% respectively, the Singapore commercial portfolio’s resilience helped offset lower contributions from the hospitality segment. Finance costs also saw a notable reduction of 17.3% year-on-year, reflecting the benefits of a declining interest rate environment.
The Singapore office properties maintained a healthy committed occupancy rate of 95.5%, with a positive rental reversion of 9.1% in the second quarter of 2025. Mandarin Gallery’s occupancy remained high at 99.0%, with a significant rental reversion of 34.3% recorded in the same period. The hospitality segment’s revenue per available room stood at S$233.
Chief Executive Officer Han Khim Siew highlighted the portfolio’s income resilience amidst macroeconomic uncertainties and emphasised the importance of disciplined capital management in supporting DPU growth. Looking forward, the company plans to focus on optimising asset performance and exploring new value creation opportunities.
OUE REIT’s proactive capital management has resulted in a slight decrease in aggregate leverage to 40.3%, with 71.1% of total debt hedged. The company remains committed to tenant retention and optimising occupancy across its office assets, positioning itself to capture emerging market trends.
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